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against the backdrop of a decline in land transactions across the country and a continued reduction in the scale of land acquisition by real estate companies, governments in many places have said they will increase their efforts to transfer land.

many places plan to increase land transfer efforts

on september 14, the natural resources bureau of shandan county, zhangye city, gansu province issued a document stating that it would increase land supply and make every effort to ensure the implementation of key projects.

according to a report in yueyang daily on august 23, yueyang city, hunan province will further increase its efforts in land reserves and transfer, strengthen market supply and demand analysis, and improve the quality of land acquisition and transfer.

chuzhou.com reported on september 10 that lai'an county, chuzhou city, anhui province will take multiple measures to increase the transfer of commercial land. scientific transfer plans will be formulated, and the transfer of commercial land in the county will be concentrated, and the transfer schedule will be reasonably arranged to ensure that the annual target is completed as scheduled.

at the same time, lai'an county will also increase the efforts to collect, store and transfer land, and uniformly collect, store and manage all commercial state-owned land assets with unclear user rights, and include them in government reserves to ensure the transfer of "clean land". a system for publishing the list of plots to be transferred will be established, including the specific location, area, use, supply method and other information of the plots to be transferred, to give market players sufficient time to anticipate and predict.

the "report on the implementation of huaiji county's fiscal budget in the first half of 2024" released on september 13 showed that huaiji county, zhaoqing city, guangdong province proposed to continue to increase the efforts to tap the potential of resource-based income, cooperate with the county resources bureau to accelerate the transfer of state-owned land and the listing and auction of land indicators, ensure that all revenues are deposited as planned, and ensure the completion of the annual general public budget revenue and fund revenue target tasks.

"if the income from land transfer fees this year does not meet expectations, there is a risk of debt repayment"

as for the reasons for increasing land supply, some cities stated that it was to increase fiscal revenue and ensure debt repayment, etc.

huaiji county said that in the second half of this year, the county's debt repayment funds must be repaid through its own financial arrangements.the main source of funds is land transfer fee income. if the land transfer fee income this year does not meet expectations, there is a debt repayment risk.

regarding land transfer, in the budget execution report of dadukou district, chongqing from january to june 2024, in terms of tapping the potential for fiscal revenue growth, dadukou district, chongqing proposed to promote land transfer to maintain growth. encourage private enterprises and other capital to participate in the revitalization of state-owned land assets, leverage social capital forces to participate through market-oriented means, and increase the benefits of revitalization. actively strengthen communication with the municipal finance bureau to ensure that land transfer income is returned as soon as possible and strive to achieve the annual land income target.

on september 10, the finance bureau of guilin city, guangxi zhuang autonomous region, issued the "report on the execution of the city's budget in the first half of 2024". in the first half of the year, the city's land transfer revenue reached 1.4 billion yuan, which was only 18.1% of the budget, resulting in the intensity of coordinated transfers to the general public budget being significantly lower than expected.

regarding the next step of work, guilin city stated that it will continue to fight the battle to "redeem red debts" by increasing resource coordination, properly disposing of existing assets, and increasing the transfer of state-owned land to accumulate sources of debt repayment funds.

the market has not yet recovered

according to a report by guosheng securities, the total land transaction volume in august this year was 203.557 billion yuan, a month-on-month increase of 17.90%, a year-on-year decrease of 45.11%, and a decrease of 37.48% compared with the same period in 2022. from january to august 2024, the total land transaction volume in china was 1,412.407 billion yuan, a decrease of 37.63% compared with the same period in 2023, and a decrease of 48.52% compared with the same period in 2022.

huachuang securities said that in the past, when there was a general lack of funds for economic development, most local governments had the motivation to raise funds for development, and the means they chose were mainly land finance. real estate companies leveraged to acquire land to provide capital for local governments, promote investment attraction and infrastructure construction, and then promote industrialization and urbanization, attracting people to move into cities to achieve a closed loop, resulting in a high degree of local government dependence on land finance. in recent years, land transfer income has declined rapidly, mainly due to the oversupply of residential land in the past (the urbanization of land is faster than the urbanization of population), which has led to a reversal of the supply and demand relationship and the current problem of high inventory.

caitong securities said in the report that land transfer drags down broad fiscal revenue. since the beginning of the year, the progress of government fund revenue has been significantly weaker than the same period in previous years. in the first seven months of this year, the progress of government fund revenue was 32.9%, which was more than 10 percentage points lower than the average level of 43.6% in the same period of the past five years. the main drag was the continuous decline in the growth rate of land transfer revenue.

this is also reflected in the report of guilin city: the progress of completion of government fund revenue in the whole city and the city level is low, and the expenditure has dropped significantly. this is mainly due to the impact of the overall requirements of the country to destock this year. the real estate market has continued to be sluggish, companies are not willing to acquire land, the income from the transfer of state-owned land use rights has dropped significantly, and expenditure has decreased accordingly.

yan yuejin, deputy director of shanghai e-house real estate research institute, said that in terms of process, all regions have planned targets for land transfer, and accelerating land supply is a normal work rhythm; at a deeper level, failure to complete land transfer tasks will affect fiscal revenue. yan yuejin also said that the real estate market has not yet recovered, and there is pressure on land transfer. while all regions are increasing their acquisition and transfer, they are also optimizing processes, but they still have to follow market rules.